When you hear store credit, business returns pop up in your mind promptly, and for a business, returns never seem to be a good idea. Who said that store credits are only confined to business returns? It depends upon entirely how you utilize them. There are multiple ways to use store credits in favor of your business besides business returns.
What Are Store Credits and How Are They Used?
By definition, online store credits are ones that you offer to your customers in exchange for their purchases which are displayed on the customer’s account and can use for future purchases.
Usually, store credits are considered a cashback way against sales returns or missing items. If a customer has purchased an item and somehow few items are damaged in the way or are faulty then customers return them and the store owner offers him store credits instead of a refund. It entirely depends on your store’s policy but in my way giving store credit is better as it makes the customer buy from you again.
In the case of the repair business, you can also give cashback. If a customer comes to you with a problem with the device you have just repaired, it’s a good possibility that you have messed up his repair. You check his data on the repair shop POS software and find out that it had a battery issue and the assigned technician forgot to back up the data. Now you have two options, either solve the problem or provide him with a refund. Since you cannot do the former so you decide to refund him.
But the refund is a tedious process and the customer can take his refund and never come back again. Not forgetting the fact that the money takes forever to refund and it will have a negative impact on your customer service as well. So in this case, store credits come in handy. You simply give your customer store credit and he can buy from you again with that credit and that data will be stored in your computer shop repair software.
Apart from cashback, there are other ways you can use your store credit efficiently like
- Return credits
- Gift cards
- Loyalty points
and it can pack a bundle of benefits for your business. Let’s see how.
Gives Customer Confidence to Buy More
When customers will know that their money is in safe hands, if somehow their repairs or purchases are faulty, they can always have their money back in the form of store credits which they can use afterward. This gives the customers liberty to buy more from your store without stressing out over returns and exchange policy. They will be aware that if they have purchased something that they don’t like afterward they can always return or exchange it and can have store credit instead.
All of this information is stored in the repair shop POS software where you manage your customers’ store credits and also a customer-facing display POS software will show your customers the store credit they own.
One of the ways you can give store credits is by providing loyalty points to your customers on every purchase just like MacDonald’s or Starbucks. You can scan points each time and they offer free items in exchange for these points.
In the repair shop business, you can also add loyalty points for each repair or the accessory they purchase. This will make them feel special and they will think you are acknowledging their loyalty and will tend to buy from you more instead of going to other stores. They will always have a pending credit to spend and they will like to use it instead of spending money on any other store.
Store credits can also help in a scenario where a customer has ordered items that he partially used. For example, he ordered a set of phone covers and opened one of them, somehow they didn’t like the design or value against its price so he wants to return them but he has already used one of them and there is no policy for partial return, so how will you satisfy this customer? You can simply add the store credit for the untouched items, it will be a fair and square deal for both parties.
So having a well-designed store credit in your repair shop POS software can please your customers and gather many benefits for your repair business.
Decrease Loss of Revenue
With the returns and exchanges, it is hectic and also loses a lot of business revenue because the money you generated is no more in your business. Not to forget the double shipping charges you have to pay while exchanges. So instead of going through all this, you can simply offer customers store credits, your money stays in your business, and customers will also be satisfied with your service. This will create a satisfactory and friendly environment for both you and your customers.
Generating Revenue by Selling Store Credits as Gift Cards
People nowadays love to buy gift cards to send to their loved ones on special occasions. Instead of sending money, they tend to buy gift cards for them to spend on whatever items they want.
Buying a gift card in other words means buying store credits to give it to someone. In this way, people are buying store credits to spend on your business and it is another way to boost your sales.
So store credit is a lot more than you think if used properly and innovatively it can be a powerful marketing and sales tool for your business. Think of ways to be creative with your store credits and see a boost in your business sales.
Steven Barron is an expert in many fields like tech, education, travel, finance, games, cars, and sports. He started his career in the tech industry, where he learned a lot and got good at spotting tech trends. Steven then moved into writing. He loves technology and is great at telling stories. His articles cover topics like new gadgets, education, and finance. They are full of detail but easy to read. Steven loves to travel and is a big sports fan. This shows in his travel and sports writing, where he draws in readers with clear descriptions and smart insights.